Undervalued Small Caps In Australia With Insider Action For September 2024

The Australian market has shown notable resilience, with the Financials sector gaining 3.6% while the overall market remained flat over the last week and up 10% over the past year. In this environment of anticipated 12% annual earnings growth, identifying undervalued small-cap stocks with insider action can offer promising opportunities for investors seeking to capitalize on potential market gains.

Top 10 Undervalued Small Caps With Insider Buying In Australia

Name	PE	PS	Discount to Fair Value	Value Rating
SHAPE Australia	13.6x	0.3x	37.58%	★★★★★☆
Corporate Travel Management	20.5x	2.4x	4.66%	★★★★★☆
Beach Energy	NA	1.5x	36.35%	★★★★★☆
Elders	22.6x	0.5x	49.87%	★★★★☆☆
Lycopodium	9.2x	1.4x	26.17%	★★★★☆☆
Bapcor	NA	0.8x	49.25%	★★★★☆☆
Eagers Automotive	10.5x	0.3x	39.22%	★★★★☆☆
Codan	33.6x	5.0x	15.96%	★★★☆☆☆
Coventry Group	251.7x	0.4x	-20.29%	★★★☆☆☆
Abacus Group	NA	5.7x	28.62%	★★★☆☆☆

Click here to see the full list of 24 stocks from our Undervalued ASX Small Caps With Insider Buying screener.

We're going to check out a few of the best picks from our screener tool.

Abacus Group (ASX:ABG)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Abacus Group is a diversified property group primarily involved in the investment and management of commercial properties, with a market cap of A$2.36 billion.

Operations: Abacus Group (ASX:ABG) generates revenue primarily from its commercial segment. The company's gross profit margin has shown fluctuations, most recently at 77.34% as of September 2024. Operating expenses and non-operating expenses have significantly impacted net income, leading to a net loss of A$241.99 million for the same period with a net income margin of -125.81%.

PE: -4.5x

Abacus Group, a smaller player in the Australian market, recently reported a net loss of A$241.04 million for the fiscal year ending June 30, 2024, compared to a net income of A$25.5 million last year. Despite this downturn, insider confidence remains high with significant share purchases over the past six months. The company announced an ordinary dividend of A$0.0425 per security for H1 2024 and forecasts earnings growth at 47% annually.

• Navigate through the intricacies of Abacus Group with our comprehensive valuation report here.

• Explore historical data to track Abacus Group's performance over time in our Past section.

Eagers Automotive (ASX:APE)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Eagers Automotive is a leading Australian automotive retail group with operations primarily in car retailing and a market cap of approximately A$3.56 billion.

Operations: The company generates revenue primarily from car retailing, amounting to A$10.50 billion. Over recent periods, it has experienced fluctuations in its net income margin, peaking at 3.75% and dipping to -1.42%. The gross profit margin reached a high of 19.14%.

PE: 10.5x

Eagers Automotive, a small cap stock in Australia, has shown insider confidence with significant share purchases over the past year. Reporting A$5.46 billion in sales for H1 2024, up from A$4.82 billion last year, it also announced a dividend of A$0.24 per share for the six months ending June 30, 2024. Despite a dip in net income to A$116 million from A$137 million last year, the company remains financially stable with manageable debt levels and ongoing buyback plans set to repurchase up to 25.8 million shares by June 2025.

• Delve into the full analysis valuation report here for a deeper understanding of Eagers Automotive.

• Learn about Eagers Automotive's historical performance.

Ingenia Communities Group (ASX:INA)

Simply Wall St Value Rating: ★★★★★☆

Overview: Ingenia Communities Group operates in the development and management of residential communities, tourism parks, and associated services with a market cap of A$1.98 billion.

Operations: Ingenia Communities Group generates revenue primarily from its Residential - Lifestyle Development and Tourism - Ingenia Holidays segments, contributing A$205.81 million and A$134.84 million respectively. The company has seen a gross profit margin trend peaking at 65.18% in Q3 2022 before slightly declining to 61.56% by Q2 2024, reflecting changes in cost of goods sold (COGS). Operating expenses have consistently increased over the periods, reaching A$165.03 million in Q2 2024, impacting net income margins which dropped to as low as 3% during the same period due to significant non-operating expenses of A$108 million.

PE: 150.9x

Ingenia Communities Group, an Australian small-cap stock, has experienced significant changes recently. The company reported annual revenue of A$472.29 million for the year ending June 30, 2024, up from A$394.47 million the previous year, though net income dropped to A$14.02 million from A$64.37 million due to one-off items impacting results. Insider confidence is evident with recent insider buying activity in August 2024, suggesting potential value recognition within the company despite lower profit margins this year compared to last year's 16.5%.

• Get an in-depth perspective on Ingenia Communities Group's performance by reading our valuation report here.

• Gain insights into Ingenia Communities Group's past trends and performance with our Past report.

Summing It All Up

• Gain an insight into the universe of 24 Undervalued ASX Small Caps With Insider Buying by clicking here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
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Interested In Other Possibilities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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